China Stocks Tumble Amid U.S. Ban Reports, Asian Markets Mixed

China's stock market saw a decline on Friday despite an increase in exports for May. Reports of U.S. lawmakers seeking to ban Chinese battery firms tied to Ford and Volkswagen from exporting to the U.S. weighed down the market. Contrarily, other Asian markets rose ahead of a key U.S. jobs report.

China stocks fell on Friday, despite growth in the country's exports for a second month in May and at a faster pace, after a report that U.S. lawmakers pushed to ban Chinese battery firms with ties to Ford and Volkswagen from exporting to the U.S. In contrast, other Asian markets rose ahead of a crucial U.S. jobs report that should provide clues on the timing of Federal Reserve interest rate cuts.

Outbound shipments from China grew 7.6% year-on-year in value in May, customs data showed on Friday, providing some relief to the economy as it battles to mount a durable recovery. Denting sentiment, the Wall Street Journal reported on Thursday that Chinese battery companies with ties to Ford and Volkswagen should be banned from shipping goods to the U.S., a group of Republican lawmakers said, alleging their supply chains use forced labor. The reported weighed down the stock market.

** At the midday break, the Shanghai Composite index was down 0.23% at 3,041.79 points. ** China's blue-chip CSI300 index was down 0.72%, with its financial sector sub-index lower by 0.04%, the consumer staples sector down 1.06%, the real estate index up 1.1% and the healthcare sub-index down 0.57%.

** Chinese H-shares listed in Hong Kong fell 0.55% to 6,519.23, while the Hang Seng Index was down 0.42% at 18,399.04. ** The smaller Shenzhen index was down 0.43%, the start-up board ChiNext Composite index was weaker by 2.26% and Shanghai's tech-focused STAR50 index was down 0.88%​.

** China's Contemporary Amperex Technology (CATL), a partner to Ford, and Gotion High Tech, a battery company partially owned by Volkswagen, should be added immediately to an import ban list, the WSJ said. ** Shares of CATL slumped 6.8% and Gotion fell 2.6%.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.12% while Japan's Nikkei index was down 0.21%.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)